TV isn’t dying, it’s evolving. Here’s how OTT Services & Connected TV has changed the traditional media landscape and how you can use it to your advantage.
OTT stands for “Over The Top” which refers to video content (movies, tv shows, etc.) that is streamed via the internet without a traditional TV contract. The biggest names in the game are Netflix, Hulu, Roku, YouTube and Amazon Prime Video. These services offer users the luxury of choice from the comfort of their own home.
Connected TV are systems that have the ability to stream more than one of the OTT platforms. These include smart TV’s and smart phones made by tech companies like Samsung and Apple. They also include specific systems made by brands who have OTT services such as Amazon Fire TV and Roku. Connected TV systems allow users to consume non-traditional media in traditional settings. Rather than streaming a movie on a laptop and worrying about hooking up cables to a TV, Connected TV lets users seamlessly integrate their favorite OTT platform with their preferred viewing system.
Instead of being locked down to one plan from one provider, people are cutting the cord tying them to traditional pay TV services, and opting to pay for subscriptions to multiple different OTT services instead. Some of these OTT services are ad free, like Netflix, and some have the option of being ad free, but at a higher price, such as Hulu. Others still have advertising throughout, like Roku and Sling TV. In addition to the numerous options, OTT allows users to access and watch these videos pretty much anywhere with an internet connection. Flat tire? Pull up a YouTube tutorial to walk you through how to change it. Bored at work? Put on an episode of The Office to lighten your mood. (Okay, maybe we shouldn’t condone watching TV at work….) With the ease and convenience of OTT services, users get what they want, when they want it. So, why not change your advertising to match?
Source: Roku media kit
Change the way you advertise! Instead of creating commercials only for cable television, create engaging videos that can be streamed across platforms such as Hulu, Roku, SlingTV, and YouTube too. The benefits of advertising on OTT platforms are the increased ability to target users who are interested in what you’re selling and performance reporting. No more are the days when the only advertising information available was how many times the TV provider showed your commercial. Now, with platforms like YouTube, you can get detailed demographics for the users that saw or even interacted with your video! Former Blockbuster CEO, Jim Keyes, famously misjudged the value of Netflix and failed to change with the times. As consumer attention continues to shift away from traditional media, it is becoming increasingly important to effectively rebalance and shift your advertising mix too.